Employee recognition is an increasingly important management requirement in the workplace, with a number of research studies showing the importance of staff engagement and appreciating employees for their daily positive contributions to the team.
“To win in the marketplace you must first win in the workplace.” – Doug Conant, CEO of Campbell’s Soup
Appreciation and Recognition are the two major factors that bring about employee job satisfaction and happiness.
According to the equity theory, based on the work of J. Stacy Adams, workers compare the reward potential to the effort they must expend. Equity exists when workers perceive that rewards equal efforts.
“When people are financially invested, they want a return. When people are emotionally invested, they want to contribute.” – Simon Sinek
But employees just don’t look at their potential rewards, they look at the rewards of others as well.
Inequities occur when people feel that their rewards are inferior to the rewards offered to other persons sharing the same workloads.
“Employees who believe that management is concerned about them as a whole person – not just an employee – are more productive, more satisfied, more fulfilled. Satisfied employees mean satisfied customers, which leads to profitability.” –Anne M. Mulcahy
Did you know the 1 reason most American employees quit their jobs is they don’t feel appreciated?
The equity theory makes a good point: What a manager thinks is irrelevant to an employee because the real issue is the way an employee perceives his or her situation.
Rewards perceived as equitable should have positive results on job satisfaction and performance; those rewards perceived as inequitable may create job dissatisfaction and cause performance problems.
Every manager needs to make sure that any undesirable consequences from equity comparisons are avoided, or at least minimized, when rewards are allocated.
To motivate workers, managers must strengthen workers’ perceptions of their efforts as both possible and worthwhile, clarify expectations of performances, tie rewards to performances, and make sure that rewards are desirable.